Financial Performance - For the nine months ended September 30, 2021, the company reported total revenue of $2,046,000, a decrease of 75.7% compared to $8,281,000 for the same period in 2020[4] - The cost of goods sold for the nine months was $643,000, which increased by 84.8% from $348,000 in the previous year[4] - The company incurred a loss before tax of $1,220,000 for the nine months, improving by 57.1% from a loss of $2,833,000 in the same period of 2020[4] - The net loss for the nine months was $1,225,000, a reduction of 56.7% compared to $2,834,000 in the prior year[4] - Basic and diluted loss per share for the nine months was $0.18, compared to $0.37 for the same period in 2020[6] - The company reported other income of $201,000 for the nine months, down from $246,000 in the previous year, reflecting a decrease of 18.3%[4] - Employee costs and related expenses totaled $639,000 for the nine months, a slight decrease of 2.9% from $658,000 in 2020[4] - The company’s total comprehensive loss for the nine months was $1,235,000, compared to $2,846,000 in the same period last year, indicating a 56.6% improvement[6] - The adjusted EBITDA for the nine months ended September 30, 2021, was $(37,000), an improvement from $(538,000) in the same period of 2020[23] - The company reported a basic and diluted loss per share of $0.02 for the three months ended September 30, 2021, compared to a loss of $0.07 for the same period in 2020[31] - For the nine months ended September 30, 2021, the company incurred a loss of $1,270,000, an improvement from a loss of $2,679,000 in the same period of 2020[31] - The company recorded a loss of approximately $1,225,000 for the nine months ended September 30, 2021, a decrease from approximately $2,834,000 for the same period in 2020[54] Revenue Segmentation - Revenue from the network infrastructure solutions segment was $476,000, down 23.9% from $625,000 in the previous year[21] - The network security solutions segment generated revenue of $852,000, an increase of 287.3% compared to $220,000 in the same period last year[21] - SaaS revenue for the nine months ended September 30, 2021, was $718,000, a significant decrease from $7,436,000 in the same period of 2020[21] - Geographic revenue breakdown shows that revenue from China dropped to $718,000 from $7,436,000 year-over-year[26] - Revenue from the network infrastructure solutions segment was approximately $476,000, down from approximately $625,000 in the prior year[46] - Revenue from the network security solutions segment increased to approximately $852,000, compared to approximately $220,000 in the same period last year[46] Expenses and Cost Management - The company incurred depreciation and amortization expenses of $628,000 for the nine months ended September 30, 2021, down from $1,193,000 in the same period of 2020[23] - Interest income for the nine months ended September 30, 2021, was $15,000, a decrease from $58,000 in the previous year[23] - General and administrative expenses decreased from approximately $1,487,000 for the nine months ended September 30, 2020, to approximately $1,020,000 for the same period in 2021, mainly due to cost control measures[52] - Cost of goods sold increased from approximately $348,000 for the nine months ended September 30, 2020, to approximately $643,000 for the same period in 2021, primarily due to increased hardware component purchases[48] Strategic Initiatives - The company continues to focus on providing network infrastructure solutions and software as a service (SaaS) as part of its core business strategy[12] - The company completed the acquisition of Storm Front Pte. Ltd. on May 5, 2021, which is expected to enhance its existing business segments and expand into the digital transformation and smart technology sectors[38] - The company plans to expand its network security solutions services to Malaysia, with operations expected to commence in the fourth quarter of 2021[40] - The company has established a wholly-owned subsidiary in Malaysia to support its operations and is reallocating internal resources to expand its services[40] - The company is actively exploring opportunities to promote business growth and enhance shareholder value amid ongoing challenges from the COVID-19 pandemic and political instability in Myanmar[42] - The company anticipates continued challenges in the coming months but is focused on ensuring the maintenance of ongoing projects in its network infrastructure and security solutions segments[42] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the deviation regarding the separation of the roles of Chairman and CEO[73] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements for the nine months ended September 30, 2021[81] - The financial statements have been deemed to comply with applicable accounting standards and adequately disclosed[81] - The company has established a code of conduct for directors regarding securities trading, with no known violations during the reporting period[77] - There were no known interests held by major shareholders or directors in any competing businesses as of September 30, 2021[74] - No share options were granted, cancelled, exercised, or lapsed under the share option scheme as of September 30, 2021[78] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended September 30, 2021[75] Share Capital and Ownership - As of September 30, 2021, the company had a statutory share capital of HKD 60,000,000 (approximately $7,692,000) and issued share capital of HKD 7,200,000 (approximately $923,000)[55] - As of September 30, 2021, Alpha Sense (BVI) holds 154,838,000 shares, representing 21.51% of the issued share capital[69] - XOX (Hong Kong) Limited and XOX Bhd each hold 117,848,500 shares, accounting for 16.37% of the issued share capital[69] - UBS Group AG holds 99,160,000 shares, which is 13.77% of the issued share capital[69]
NEXION TECH(08420) - 2021 Q3 - 季度财报